Nope, the prices in offline DMart stores are significantly lower than the prices on DMart Ready app.

Currently, the closest online competitor to DMart offline stores in terms of pricing seems to be Flipkart Grocery which does next day slotted deliveries. That works profitably even while selling the products at low prices as the delivery boys do dozens of deliveries in one trip and the average order value is also significantly higher than that of quick commerce apps.

Flipkart’s model is sustainable due to low pricing, high inventory turnover, leading to fresh quality products restocked all the time, all of which results in repeat buying and customer loyalty. A similar EDLP strategy was championed by its parent Walmart in the US and also made DMart a well-oiled profitable machine while other supermarket chains have perennially struggled.

Yesterday I needed a couple of things urgently and ordered them on Blinkit. One of the products they delivered was a dusty packet which was packed 70 days ago and just 20 days away from expiry date. I’m amazed at how bullish some people are about the long-term prospects of quick commerce.

It seems Motilal is operator riding this stock. While it sold 1.09 crores of shares in its personal capacity in September, may be part of some PMS or its treasury money, at the same time, through open market, it bought roughly 1 crore of electcast shares in its various mutual funds schemes as seen below

So net, nothing bought or sold, just reshuffled in open market to create margins of safety or price movements desired.

Be wary of such operator runned stocks.

PF Update:

I decided to exit my holdings in Oracle financial services today.

Even though I initially started accumulating this stock for an attractive dividend yield & knowing the company has its competitive advantage.

But now the PE has short up from approx. 10 PE to 40 PE within short span of my purchase, couldn’t accumulate much when it was available at 10 PE and not sure the rating will be maintained for the long run, that’s my limitation.

Hence exited.

All said and done, the results show that the bank is in excellent shape. It has been able to more than neutralise two separate issues which were not of its making and still remained in profit. The high provisions have increased the bank’s ability to show good PAT in Q3 and Q4. Credit cards have already touched break even. Liability cost is going downward. In my opinion the dip in share price is an excellent opportunity for people to add or enter. The probability of an underside is much lower now than an upside. This realisation seems to be slowly sinking in the market. Personally I am fully invested and I am not going to add any more. Instead of nursing a sense of injury, think and assess dispassionately. I am not a consultant so analyse yourself as I could be biased, being invested in CapFirst since 2018 plus several subsequent add ons.

If the guidance for Q3 and Q4 comes on target, the upside will be steep. Wishing a happy Deewali to all.